The 13 Hotel in financial trouble again after sale agreement lapses

The developer of the troubled The 13 Hotel is looking for other prospective buyers after a sale proposal and purchase agreement for the hotel collapsed.
The announcement came 10 months after developer South Shore Holdings announced that it had made an agreement that could lead to the disposal of a 40% interest in the subsidiary that owns the hotel project in southern Cotai.
The stake was valued at HKD750 million.
In a filing on Tuesday, the developer said that it had failed to reach agreement with the three purchasers to further extend the date upon which all precedent conditions must be met, as cited in a report issued by Inside Asian Gaming.
The sale and purchase agreement has therefore expired, forcing the developer to refund a deposit made by each of the purchasers.
Although the developer did not further explain why the sale and purchase agreement had not succeeded, it said that it would seek other prospective buyers.
“The Company intends to continue with its endeavors to seek prospective buyer(s) for the Hotel and/or the Land and execute a sale of the Hotel and/or the Land, and will work with the bank (in relation to the term loan in the outstanding principal amount of approximately HKD2.84 billion (as at 31 March 2020) on any further remedial measures as appropriate,” it said.
The developer has previously requested a standstill from its bank to avoid the enforcement of security and liquidation of the company, after the bank demanded the firm make an immediate payment of HKD2.48 billion.
The amount includes the entire principal amount with interest and follows an amount of HKD470 million, which was supposed to be paid to the bank on March 31.